FAST
SPECIALISTS
Need a surety bond?
Some specialty brokers have agreements with many insurers that allow them to issue bonds directly at their offices. Individuals or companies who have opened a surety file can receive the documents quickly and efficiently.
The variety of guarantees offered
1- Bid bond
This is the bid bond that can be used during a call for tenders in order to demonstrate good faith to the client. In addition, it is a way to reassure him about the solidity of his financial situation for the realization of the project in question. This bond is also a guarantee of producing all the necessary documents if the bidder is successful.
In the event that the contractor chooses not to carry out the work, he is obliged to pay the difference with the bidder or a percentage in accordance with what is stipulated in the contract. This type of bond is usually accompanied by a letter of intent stating that the surety agrees to provide a performance bond, in addition to a labour payment bond, once the bidder is selected for the project.
2- Performance bond
Thanks to this guarantee, the client can ensure that the contract is carried out under ideal conditions. In the event of default by the debtor, the guarantee is used to complete the work.
3- Material and labour bonds
This type of bond is a commitment to pay for labour and materials if the contractor fails to meet its responsibilities. This guarantee prevents problems with subcontractors likely to place legal hypothecs on the construction. Such a bond is accompanied by a performance bond.
4- Maintenance Bond
It offers a guarantee to the client that the repairs required will be carried out in the event of omissions or poor workmanship. This maintenance work has a well-defined duration after the provisional acceptance of the work. In the event of default by the contractor, the guarantor is responsible for the repairs.
5- Licence bond
Some jurisdictions and government agencies require a bond to obtain a licence or permit necessary to carry on an activity. The purpose of such a precaution is to protect the interests of the organization. Many types of surety bonds are available and can be issued directly at the offices of insurers offering them for a period of between two and three years.
6- Customs bond
It provides financial protection guaranteeing the beneficiary the payment of customs duties and taxes on imported goods. It is therefore used to simplify the passage of goods through customs.
7- Miscellaneous guarantees
Several types of bonds are available depending on the requirements applicable in Québec for the various works and projects carried out nationally or internationally.
